NOG Raises Buyback Plan by $100 Million

Northern Oil & Gas Inc. (NOG) has added $100 million to its existing $150 million share repurchase program.

The original package was announced July 2024 and had $100 million left before this increase, the Minnetonka, Minnesota-based production company said in an online statement.

In the first quarter of 2025 so far, NOG redeemed over 330,000 shares for about $10 million at an average price of $29.86 per share inclusive of commissions.

“The increased authorization reflects the Company’s confidence in its strategy, business plan and prospects and underscores NOG’s long-term commitment to returning capital to shareholders”, NOG said.

NOG chief financial officer Chad Allen commented, “Amid heightened market volatility, we will prudently balance share repurchases with maintaining a strong and improving leverage profile”.

“The expanded share repurchase authorization enhances our long-term capital allocation flexibility. While maintaining a strong balance sheet remains our foremost priority, our disciplined hedging strategy provides the flexibility to pursue growth opportunities, deleveraging and share repurchases - allowing us to strengthen our financial position while seizing unique value opportunities for shareholders”.

NOG earlier declared $0.45 in dividend per share for the first quarter of 2025, up 12.5 percent from the first quarter of 2024.

It reported $71.7 million in net profit for the fourth quarter (Q4) of 2024, down 81.56 percent against the same three-month period in the prior year as lower oil and gas selling prices offset an increase in production. Per-share net income was $0.72 basic and $0.71 diluted, according to results published online by the company February 19, 2025.

NOG produced 132,000 barrels of oil equivalent a day (boed) in the October-December 2024 quarter, up 15.79 percent year-on-year. Q4 2024 production consisted of 79,000 barrels per day (bpd) of oil and 317 million cubic feet a day of gas.

NOG’s average oil sales price settled at $65.4 per barrel, down from $74.51 in Q4 2023. The average net oil sale price accounting for settled derivatives was $67.57, compared to $73.66 in Q4 2023.

Q4 2024 oil and gas sales totaled $545.47 million. NOG reported $34.22 million in derivatives losses. Income from operations came at $132.63 million. Total income before income taxes landed at $87.84 million. Free cash flow was $96.38 million.

NOG’s proven reserves at the end of 2024 grew 11 percent against year-end 2023 to 378.5 million boe. 

In 2025 NOG plans to produce 130,000-135,000 boed. Oil output guidance is 75,000-79,000 bpd.

“We expect to execute a record number of SPUDs, building momentum throughout the year”, chief executive Nick O’Grady said. “Our diversified model positions NOG with substantial external opportunities to create additional value, further solidifying our commitment to delivering both top-tier relative and absolute returns”.

To contact the author, email jov.onsat@rigzone.com